Nomura on the BOJ: BOJ a ‘Lone Dove’; stay long EUR/JPY into year-end

Nomura FX Strategy Research discusses the JPY outlook ahead of the BoJ meeting this week, noticing that the central bank is becoming a lone dove among the major central bank community.

«Foreign central banks are taking steps toward policy normalisation, but the BOJ’s accommodative policy stance will likely remain intact next week, as we think a downgrade of its inflation forecast is inevitable again.

We think the BOJ’s persistently accommodative policy stance will weaken JPY against the major currencies,» Nomura argues. 

In line with this view, Nomura continues to recommend long EUR/JPY exposure into end-Dec 2017.

via eFX
—My earlier posts on the BOj today:

  • BOJ decision day — preview (add this to the other previews!)
  • Bank of Japan meeting concludes today — here is when to expect the announcement
  • Preview of the BOJ meeting (Cap Eco)
  • Moving along — preview of the Bank of Japan meeting
  • Preview of the Bank of Japan meeting (announcement due Tuesday)
  • BOJ likely on hold this week, but to nudge down inflation forecasts

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